Earnings call transcript: Empresas Copec Q2 2025 beats expectations, stock rises

Empresas Copec reported a strong second quarter for 2025, with earnings per share (EPS) of $0.185, significantly exceeding the forecast of $0.1511, resulting in a 22.44% surprise. Revenue reached $7.18 billion, surpassing expectations by 8.3%. Following these results, the company’s stock price rose to $7.27, just 3% below its 52-week high of $7.50. According to InvestingPro data, the stock has delivered an impressive 18.09% return year-to-date, though technical indicators suggest it may be entering overbought territory.

Key Takeaways

• Empresas Copec’s EPS and revenue significantly beat forecasts.
• Stock price increased by 2.5% post-earnings announcement.
• Progress continues on the Sukuru project, with 13.2% completion.
• ESG initiatives are advancing, including an electric bus terminal.
• Pulp market remains weak, affecting pricing strategies.

Company Performance

Empresas Copec demonstrated robust performance in Q2 2025, with substantial revenue and EPS growth compared to forecasts. The company’s strategic initiatives, including the Sukuru project and ESG advancements, are progressing well. Despite challenges in the pulp market, the company maintained strong operational metrics. InvestingPro analysis reveals the company trades at an attractive P/E ratio of 8.94x and maintains a solid financial health score of "GOOD," with particularly strong marks in price momentum and relative value. Subscribers can access 10+ additional ProTips and comprehensive valuation metrics.

Financial Highlights

• Revenue: $7.18 billion, exceeding forecasts by 8.3%
• Earnings per share: $0.185, a 22.44% surprise over expectations
• EBITDA: $712 million, a 7.5% decrease year-on-year
• Net Income: $228 million
• Cash Holdings: €700 million

Earnings vs. Forecast

Empresas Copec’s actual EPS of $0.185 was 22.44% higher than the forecasted $0.1511. Revenue of $7.18 billion surpassed the expected $6.63 billion by 8.3%. This significant earnings beat underscores the company’s operational strength and strategic execution.

Market Reaction

The stock price rose following the earnings report, reflecting investor confidence in the company’s performance and outlook. Trading near its 52-week high, the stock’s movement aligns with the positive earnings surprise. The company’s financial strength is further evidenced by its 34-year track record of consistent dividend payments and current dividend yield of 4.2%. InvestingPro’s Fair Value analysis indicates the stock may be slightly overvalued at current levels, suggesting investors should monitor entry points carefully.

Outlook & Guidance

Empresas Copec continues to invest in the Sukuru project, with plans for a logistics partnership to optimize operations. The company anticipates potential stabilization in pulp prices and has scheduled an Investor Day for November 19 to discuss future strategies. With a current ratio of 2.2 and liquid assets exceeding short-term obligations, the company maintains a strong financial position to support its growth initiatives. Get deeper insights into Empresas Copec’s financial health and growth prospects with InvestingPro’s comprehensive research report, part of our coverage of 1,400+ top stocks.

Executive Commentary

Rodrigo Hoydobro, CFO, noted, "We continue to see a weak environment for prices. However, there are some signals that prices could be reaching a bottom." Gianfranco Turfello remarked on the Sukuru project, "Our intention is not to invest the whole amount ourselves, but to share the investment."

Risks and Challenges

• Continued weak pricing in the pulp market could impact margins.
• Rising net debt due to project investments may affect financial leverage.
• Oversupply in the wood products market could pressure prices.
• Macroeconomic factors may influence industrial channel volumes.
• Regulatory challenges in securing additional project authorizations.

Q&A

Analysts inquired about potential asset sales to manage leverage, with executives considering divestitures to decrease debt. The potential logistics partnership for the Sukuru project was also a topic of interest, highlighting strategic plans for future growth.

Full transcript - Empresas Copec (COPEC) Q2 2025:

Moderator/Operator: Good morning everyone and welcome to the Imprisiscopic Second Quarter twenty twenty five Results Conference Call. Today’s presentation and the second quarter twenty twenty five earnings release are available on the company’s Investor Relations website at investors.impriscopec.cl. Before we begin, I would like to remind you that this presentation may include market outlooks and forward looking statements, which are based on the beliefs and assumptions of Empressive Kopek management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events and therefore depends on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Imprison’s Kopek and could cause results to differ materially from those expressed in such forward looking statements.

This presentation contains certain performance measures that have been adjusted with respect to IFRS definitions, such as EBITDA. In this opportunity, questions will be received in written form. If you have a question, please write it down on the Q and A section. Please be aware that your company name should be visible for your question to be taken. I’ll now turn the call over to Mr.

Rodrigo Hoydobro, Chief Financial Officer of Empressis Copac. Please go ahead, sir.

Rodrigo Hoydobro, Chief Financial Officer, Empresas Copec: Okay. Good morning, everyone, and thank you for joining us today in this conference call where we’re going to be taking a look at the results for the second quarter twenty twenty five for Impreza’s Quebec. I’m gonna flip through the presentation. It’s a brief presentation, roughly twenty to thirty minutes long, and then we’re going to open it up for for the q and a session. So at that point in time, I’m gonna be joined by mister Gianfranco Turfello and Mr.

Christian Palacios from Arauco and Empresas, Quebec, respectively. They will be helping us out with any questions you might have at the end of the session. Having said all that, let me begin flipping through the presentation that we have prepared for you. So let me move towards the first page, which is sort of an executive summary with the main figures and the main developments for the quarter. We recorded an EBITDA of $712,000,000 for the second quarter twenty twenty five.

This is 7.5% below the comparable quarter twenty twenty four, driven essentially by a lower performance in forestry and offset to some extent by a very good performance in energy. Energy, in general, has been doing very well during the last few quarters. You can see the main factors there. Year on year, we have higher volumes at COPEC, a very strong commercial performance at COPEC. Likewise, for Avastille, where we have seen higher volumes basically all across the board.

In all geographies, we have seen a growth in volumes with the exception of Chile, in particular, for particular reasons here in Chile. Together with that, we are consolidating the results of the recently acquired company in Europe, Gasim. Q on Q, we have a drop with respect to the first quarter twenty twenty five, which was an exceptional quarter, actually one of the quarters with the largest EBITDAS in the history of COPIK. So compared to that, we had a drop driven by low industrial margins, unfavorable inventory regulation effects and also decreased volumes because of seasonality in Chile. Regarding forestry, we had a drop year on year and Q on Q.

Year on year, we had lower pulp prices. As you know, pulp prices during this year have been quite low. This was partly offset by a good performance at the Wood division. Likewise, Q on Q, we have lower pulp volumes, which is also partly offset by this performance in the Wood segment. In terms of the main developments of the quarter, we take a look the progress in Sukouryun.

This is already reaching 13.2%. Good news regarding our risk ratings. We were confirmed by Fitch in our BBB international rating and our AA local rating. We have continued to place bonds in the local market, once again with a very good issuance recently in the local market. ESG, we continue to make progress in electro terminals for city buses, this time in Concepcion in the South Of Chile, a large city in the South Of Chile.

And COBEC continues to make progress in its battery storage system in the North Of Chile linked to its Granja Soleil project. Some more detail on all of this to follow. The main figures for the quarter are shown on screen there. The EBITDA, as I said before, $712,000,000, which is down with respect to both comparable quarters. The net debt to EBITDA is standing at €2,900,000 still within the desired ranges and within the expected ranges, but of course, with an upward trend because of the investment that we are going ahead with at Sukuru.

CapEx is up to EUR591 million, out of which most, of course, has been devoted to the forestry sector because of the Sukuru project. Pulp EBITDA is down because of lower pricing scenario. Wood Products EBITDA doing quite well at $138,000,000 Quebec and Avastivo also performing very well and Mina Justa with a very good quarter as well. If you see the evolution of EBITDA and net income there, you can see EBITDA standing at $712,000,000 net income at $228,000,000 Both figures are pretty much in line with what we had been recording over the last few quarters. If you take the accumulated EBITDA as of June year, so for the first semester of this year, we have $1,500,000,000 approximately, which is in line with the $3,000,000,000 figure that we have communicated as a mid cycle figure for the company.

So pretty much in line with what we were expecting so far. There is some additional financial figures there on screen. You can see cash holdings at €700,000,000 quite significant cash holdings. Together with that, a good balance of maturities for the years to come. Net debt to EBITDA standing now at 2,900,000,000.0 As we can see there, we have an upward trend, of course, because of the investments that is being made in Sukuru essentially.

So this is something to be expected, still at very healthy levels and within our desired range and our projected range as well. In terms of debt by company and by type, you can see that debt is very well distributed among our different subsidiary companies, all of them complying with their respective financial policies. In terms of type of debt, we have bonds, we have bank debt and other kinds of debts as well. As usually, we like to keep all financing channels open, especially for types of high investments, such as the one we’re facing now. In terms of financial ratios and returns, you can see EBITDA margins and return on capital employed pretty much in line with what has been the case for the last few quarters.

So roughly 10% margin for EBITDA and roughly 9.5% for return on capital employed. Let us dig further into the forestry division. Some further detail on forestry showing on screen there. Arauco recorded an EBITDA of three fifty five million euros for the second quarter twenty twenty five, which is down with respect to the comparable quarter twenty twenty four, driven of course by the lower pulp price environment, but partially offset by increased pulp volumes with respect to the second quarter twenty twenty four and a good performance, as we said before, in the woods division driven by higher volumes and prices for sawn wood. Together with that, we are seeing lower unit selling costs basically across the board for the different fibers.

Some more detail on pulp there. Pulp has recorded an EBITDA as informed by our subsidiary, Analco, an EBITDA of $259,000,000 which is pretty much in line with the previous quarter, but of course, quite significantly down with respect to the second quarter twenty twenty four because of the lower price scenario. Regarding selling costs, you can see that year on year, there’s a drop in costs basically all across the different fibers. Q on Q, we have a drop in bleached softwood and dissolving pulp, offset to some extent by an increase, a very slight increase in bleached hardwood and more significant increase in unbleached softwood because of the maintenance that took place at our Constitution mill during the quarter. In terms of prices and volumes, you can see there that prices are 12% down with respect to the second quarter ’twenty four.

Volumes are up, however. Prices are up with respect to the first quarter, but volumes are 12% down with respect to the first quarter twenty twenty five. Some comments regarding the situation for pulp during the quarter. We had a quarter basically of low prices, mainly in short fiber. Long fiber also trended somewhat down, but continued to be way above with a significant gap with respect to short fiber.

In China, in general, we have seen an active market with quite a lot of demand, but at the same time, a lot of cautiousness from the paper buyers and also a lot of supply coming on stream. So but bottom line is that prices have remained weak during the quarter. In Europe, we have seen a slightly different situation with a demand that is not strong, and we have seen also a lower consumption in nearly all fibers in Europe, together with quite a strong presence of supply in the different fibers. So in spite of some mill closures, we have seen a downward pressure on prices in Europe in general. In terms of dissolving pulp, basically a lot of uncertainty stemming from the trade situation around the world and cautiousness on the side of buyers.

So that has also contributed to downward price pressure. The outlook for prices going forward, we continue to see a weak environment for prices. However, there are some signals that prices could be reaching a bottom and some potential positive signals in terms of a potential beginning of recovery going forward. Some room for further drops in prices in terms of long fiber. Local demand in China continues to be active, but buyers continues to be cautious and therefore, this general sensation of weakness and cautiousness expect to continue for a while.

Some seasonality factors could begin to show some positive effects. In Europe, we continue to see a weak situation as well with low demand across the board for different fibers and also a lot of supply. In general terms, we continue to see the tariff situation around the world continue to bring uncertainty and therefore, bring some downward pressure on prices. You can see the pulp prices, the net adauco pulp prices in China standing around 500 or $5.10 for the last few weeks, and that compares to $7.20 for long fiber and 800 approximately for dissolving pulp. Let me move to the wood products.

As we said, we reported a good EBITDA here, 138,000,000, which is a little bit above the historic levels. So in line with historic leverage, but a little bit above. This has been driven by good performance in terms of volumes and prices in general. We can see prices increasing a bit for panels and volumes decreasing year on year, but showing stability Q on Q. And in terms of volumes for solid wood increasing Q on Q and year on year.

But all in all, a good EBITDA in terms of wood products. And looking at our main markets here, you can see North America, which is 50% of our total sales. You can see, in general, uncertainty, cautiousness once again. We are seeing, for most of our products, some oversupply and some price pressures. That’s the case for MDF, for example, the case for particleboard as well.

In the case of remanufactured products, the markets have been affected by higher interest rates and consequently, a lower index of housing starts. However, in the case of plywood, we have seen a strong market, which could continue showing stability and strength, solid demand and eventually an upward trend in prices. Probably in contrast to the North American market, we are seeing a stronger situation sorry about that, we are seeing a stronger situation in our main markets in LatAm. Brazil is showing a stronger market, and we could expect that to follow for the next few months, stability in volumes and also some potential price increases. In the case of Chile, we still see uncertainty in terms of construction and therefore, uncertainty in wood products.

But we have been able to go ahead with some price hikes in spite of this uncertainty in demand. Some particular product lines, such as particleboards and plywood, are performing well. Argentina shows a very strong potential, but still a lot of uncertainty and demand volatility, which makes it a challenging market. Let me move on to Energy. Energy has been performing quite well over the last few quarters.

You can see the consolidated EBITDA for Quebec there standing at CLP $255,000,000,000, which compares well with the CLP $236,000,000,000 that we recorded in the second quarter twenty twenty four. Of course, it is a drop with respect to the first quarter twenty twenty five, we had an exceptional figure, probably one of the highest figures ever for Quebec. So Q on Q, we see higher volumes in Chile, very strong commercial performance in terms of increasing volumes. This is, to some extent, offset by unfavorable inventory regulation effects and also a lower industrial margin. But all in all, a very good performance at the consolidated level.

Some further detail on the commercial figures are shown there on screen. In terms of gas station volumes, they are up by 4.3% year on year, which is a very healthy figure. In the case of the industrial channel volumes, it is up by 13.7% year on year and pretty much in line with the also very high figure that we reported in the first quarter twenty twenty five. So a very good industrial performance. This let me remind you that this is a volatile segment.

It depends on the different bidding processes that we are able to win. In this particular case, we have been very active in terms of mining clients and that has brought about this very important growth with respect to the figures last year. Solid performance in general in Quebec, very solid positioning in both channels. Likewise, in the case of Torpell, we continue to see very strong figures. The EBITDA is up to COP $433,000,000,000, which is slightly down with respect to the figure last year, which was COP $463,000,000,000, but still at very good levels.

The drop is driven basically by higher distribution administration costs and an unfavorable inventory and regulation effect, which, as you well know, tends to be very volatile. But this is offset by a solid commercial performance, higher volumes essentially driven by Colombia and Peru. And also, what has been a common factor over the last two quarters is the very good performance of lubricants. Lubricants is a segment that has performed very strongly following the acquisition of the operations of ExxonMobil that we went ahead with some years ago, and that is already maturing and bringing about very good results. So as you can see in the evolution of EBITDA there, Copel has shown over the last eight quarters or so in a row, a very high level of EBITDA generation driven by essentially a very good logistics optimization, together with the strong performance of the lubricant segments and in general, a very solid commercial performance.

There’s a higher non operating income as well in PROPEL worth mentioning. In this particular case, we had a onetime write down of the assets that were held for sale in Ecuador last year in the second quarter. So that’s a onetime negative effect that we had last year, which is not there anymore during this quarter. Moving on to Avastility, is another company that has shown solid performance across all geographies in general during the during the last few quarters. We have better volumes basically across all geographies with the exception of Chile because of higher temperatures essentially, but strong performance in terms of growth of volumes in Peru, Ecuador and Colombia.

Together with that, when comparing with the second quarter twenty twenty four, we are seeing for the first year the consolidation of the gasip operations in Spain and Portugal, which obviously contribute significantly to the consolidated EBITDA. All of that is more than offset by higher taxes, which leads to a lower net income actually during the quarter when compared to the second quarter twenty twenty four because of higher taxes, driven in this particular case by a particular foreign exchange effect. Looking at the operational figures for Abastille for different geographies, you can see that in general, we have been recording very strong volume growth in the different geographies. So 9% up, very strong in Colombia, which is basically associated with a very good pricing strategy in the bulk segment. In the case of Ecuador, we also see a strong 9.9% increase in volumes, driven essentially by the bulk segment with the substitution of other types of fuels.

In the case of Peru, also a strong growth, 13.6%. In this case, 13.6 very strong, and that is driven by growth in the poultry industry, which is a strong industry in Peru, also coupled with substitution of other types of fuels. And all of that, to a certain extent, offset by Chile, where we had a drop in the bottle segment essentially following higher temperatures during the winter. In Spain and Portugal, the gasiva operations have been doing very well, actually with higher margins than expected because of regulatory issues and also higher volumes than expected because of both lower temperatures for the season and also higher volumes because of, once again, other substitution of other types of fuels. So we can see the new company performing very well for Avastivle.

Moving on to other investments. A couple of comments to make here. Sonachol, very stable company, very solid with a net income that is in line with volumes transported by the pipelines, with slight increase with respect to the second quarter twenty twenty four. Our Fishing division in Ijemara, hit by lower prices and higher costs for its main products. Metro Gas showing quite a significant decrease in terms of net income recorded for the quarter, but has to that has to do with a onetime effect, a onetime positive effect that we recorded in the second quarter twenty twenty four, which had to do with an update or a reversal of a provision for a lawsuit that we had with a supplier in Argentina, dating back to the years of the natural gas supply crisis with Argentina.

This lawsuit was finally resolved. But at this point in time, the second quarter twenty twenty four, we went ahead with this reversal of the provision, which yielded a very strong positive result. But of course, it’s not there in this quarter twenty twenty five. Aches also from natural gas, the trading company from natural gas, the wholesale trading company with a very stable net income for the quarter. Minajusta with a very strong performance in the quarter.

EBITDA of CHF225 million and net income of CHF139 million for the quarter. This has to do with an increase in physical sales, also with a very strong pricing scenario and also particularly with low cash costs stemming in this particular quarter with a very strong presence of byproducts, essentially silver, very strong presence of silver, which is credited against the total level of cash costs. That’s what you that’s why you see a low $1.3 per pound cash cost there. That has to do essentially with this presence of very strong presence of silver during the quarter. So very good performance by Miraghosta.

Main developments during the quarter, have been Arauco has been making progress in Sukouryu. The Sukouryu project is already standing at 13.2% progress as of June, so a good figure of progress for Sukouryu. 4,800 workers on-site already out of a total of more than 14,000 employees that are expected during the construction phase and around 6,000 workers when fully operational for the project. Works have begun at what is called the balance of plant, which had to do with the associated infrastructure for the auxiliary infrastructure for the mill, basically pipe racks and chimneys. Also, work has begun on the water and effluent treatment plants.

Regarding plantations, still are making progress and already secured more than 70% of the required total forestry land that’s already in place. And the wood supply for the first few years of operations is already secured as well. Finally, both the authorization is in place, the regulatory authorization and an agreement is signed with a logistics operator for transporting the pulp by railway to the Santos Port. So all in all, good progress for Sugruyuh. Another piece of good news here, Fitch confirmed the ratings for Empresascopeck, the risk ratings for Empresascopeck, BBB international and AA locally, both with a negative outlook and highlighting the robust credit profile of Empresascopec and its subsidiaries.

So good news here. In line with that, we have continued to issue in the local market, this time with a $54,000,000 bond that was placed with a maturity of twenty one years, a rate of 3.4% on top of The U. S, which is the inflation linked currency in Chile, which means a spread of 85 basis points on the base rate, which is one of the lowest corporate spreads that have been achieved during the year. And this is basically to refinance liabilities in our subsidiaries. Moving on to ESG.

We have continued to make progress in terms of our positioning in electromobility. One of the pillars here is being the most important actor in the supply of electricity for city buses. And that’s exactly what we’ve done with the integration of a new terminal this time in Concepcion, which is a large city in the South Of Chile. So the first electric terminal for public transportation in Concepcion, which has been carried forward by COPEC, which is also supplied in terms of the electric power supplied by Emoac, which is also a subsidiary of COPEC. Arauco has joined an international task force here to go ahead with the standard for the valuation of natural assets.

So what is being done here is a pilot plan, which seeks to come ahead with framework for a standard for measuring and reporting the value of natural assets, which is being done in conjunction with capitals coalition and also with TNFD, which stands for Task Force on Nature Related Financial Disclosures. So it’s a very serious effort by Arauco and other institutions in order to be able to quantify in a standard form, quantify the benefits provided by forests, which, as you well know, are many environmental benefits such as carbon sequestration, carbon capture, biodiversity conservation, water regulation, timber production and so on and so forth. Interesting initiative here for standards of valuation. Quebec continues to make progress in its positioning in the electrical power generation segment. This is a battery energy storage system that is carried forward together with TransSelect.

It is 64% complete already, and it is linked to the Gran Casolar asset that COPEK acquired last year. So this will allow COPEK to inject in a steady and stable form a total capacity of 105 megawatts. This is expected to start in 2025. And finally, an invitation here for the investment community. All investors more than welcome to the new edition of our Investor Day.

We have already set the date for the November 19. This is going to take place at Club Cincuenta, Group Cincuenta, which is right next to our corporate headquarters here in Santiago. So please save the date, and all the investors are more than welcome to attend this new edition of our Investor Day. So having said all that, let me open up the floor for the Q and A session. And let me ask Christian and Gianfranco to please join me.

Thank you.

Moderator/Operator: Thank you. We will now start the Q and A. If you have a question, please write it down on the Q and A section. Please remember that your company name should be visible for your question to be taken. Wait while we pull for questions.

Q&A Facilitator: Okay. Hello, everyone. Thank you for attending this this webcast. I’m gonna start reading the questions here. I have Emerson Vieira at Goldman Sachs.

This goes to Gianfranco. Can you please comment on the pulp lower pulp volumes recorded in the second quarter? And what was the production due to the stoppage at the constituency of need?

Gianfranco Turfello, Executive, Arauco: Well, we had about 11% lower sales volume on the second quarter, and that was basically because of market conditions. We we there was a softer market during the second quarter, and and we were more, let’s say, advanced selling in the first quarter. So that’s why the volumes of sold were lower. The production levels were similar, as you can see in in about 1,100,000 tons. So, basically, market that increased a little bit the the the inventories, but we then we started selling more normal volume at the end of the quarter.

In terms of constitution, it was a normal annual annual program stoppage for the mill. Normally, the the stoppage are for constitution are twenty, twenty one days. So it’s a normal stoppage of production, and we have a program that lost production because of an annual stoppage. So no no big impact in our plans or in in our target production for for constituency.

Q&A Facilitator: And can you comment on urban sales plan if you’re planning to have another move like that going forward? And if you what measure are you considering because of the increased leverage in this high CapEx space Yeah. Because of Subaru?

Gianfranco Turfello, Executive, Arauco: Well, we normally are selling land that it has a higher value for or uses. I mean, this case in it was in Brazil in Curitiba. We used to have a a particular board mill in Curitiba originally it was closed many years ago. So we we we had some land that was very attractive for for other uses, And and we sold that in in I think it was, like, $20,000,000 and and with a profit of 15,000,000. It’s it’s a small amount, but it’s a lot of value creation by other uses of that land.

It was inside the urban perimeter of of Curitea, so nothing to do with forestry or whatever. In terms of of alternatives for decreasing leverage, of course, we we we are always analyzing what type of divestitures we divestitures we can do to decrease leverage. We did last year a big divestment of of land and forest. We are not planning to to sell more land in big amounts, but we could do some selling of of forestry assets, biomass, standing trees, with a contract to repurchase probably at the in the future in order to decrease leverage. We are thinking about that.

We haven’t done anything yet, but that could be done in case necessary to to increase liquidity and decrease leverage.

Q&A Facilitator: Thank you, Gianfranco. I have Tatian Candini. She’s asking about the bulk market. Some players are planning to and announcing some price increases for this month. Is Aravco willing to share this view on a better market and if we’re gonna announce also follow-up price hike?

Gianfranco Turfello, Executive, Arauco: Well, we we heard that that one competitor the competitor in the market has announced, I think it’s a, like, a $20 increase in in in the HKP price. We haven’t taken a decision yet. We we are already a little bit above the the price of the competitors. So we were at $5.10, I think, the last price. But I I’m not aware of the negotiations of prices that are happening at this moment, so I cannot comment that on that.

It’s a good news that’s that the competitors are are trying to increase prices. The volumes are are the demand is good. So as long as we prices can start increasing, it’s it’s a good news, but haven’t decided anything yet.

Q&A Facilitator: And the second question about the Sukubu project, Anadarko should have a an additional CapEx of around 1,000,000,000 because of logistics. Do you have an agreement already with the for the project?

Gianfranco Turfello, Executive, Arauco: No. I mean, the the the logistic part is is lower than that. Probably, you’re adding all the the the forest and everything that we have been doing for all these years. But our intention is to share the the CapEx of the logistic part. So we are in the process of looking up for a partner for a post potential JV to to hold the logistic assets, which are basically the terminal in Porto Santos.

And the rolling stock of I mean, the the the the and and and locomotives associated with the transportation of of pulp from the mill to the port. And we are in the process of that, and our intention is not to invest the whole amount ourselves, but to share the investment because it’s we want to concentrate on the on the construction of the mill. And we think that we could find a good partner in sharing the risk of the logistic part would be beneficial for both of us. So but we are in that process, and probably we’ll have some news at at the end of the year.

Q&A Facilitator: Okay. I don’t see more question at this moment. So K. This

Moderator/Operator: This does concludes the Q and A section. At this time, I would like to turn the floor back to Mr. Rodrigo Huedobro for any closing remarks. Please go ahead, sir.

Rodrigo Hoydobro, Chief Financial Officer, Empresas Copec: Okay. Thank you all very much for attending today, and we’ll see you again at some point around mid November just to take a look at the results of the third quarter. Thank you very much. Have a good day. Bye.

Moderator/Operator: Thank you. This does conclude today’s presentation. You may disconnect now, and have a wonderful day.

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